The boom in artificial intelligence will increase banksDependence on big U.S. technology companies creates new risks for the sector, European banking executives said.
Enthusiasm around the use of artificial intelligence (AI) in financial services – already widely used to detect fraud and money laundering – has become a household name since the launch of OpenAI's viral ChatGPT chatbot in late 2022 as banks explore ways to deploy generative AI.
But at a gathering of fintech executives in Amsterdam this week, some expressed concern that the amount of computing power needed to develop AI capabilities would force banks to rely even more on a small number of technology providers.
ING chief analytics officer Bahadir Yilmaz, in charge of the Dutch bank's AI work, told Reuters he plans to rely on Great technology companies “increasingly forward”, for infrastructure and machinery.
“You will always need it because sometimes the power of the machines needed for these technologies is enormous. It is also not really feasible for a bank to develop this technology,” he said.
Banks' dependence on a small number of technology companies is “one of the biggest risks”, said ING's Yilmaz, saying European banks in particular needed to make sure they could move through from one technology provider to another and avoid what he calls “vendor lock-in.” .
Britain last year proposed rules to regulate the heavy dependence of financial companies on the outside world. technology companies such as Microsoft, Google, IBM and Amazon. Regulators fear that problems at a single cloud computing company could potentially lead to an outage of services at many financial institutions.
“AI requires enormous amounts of compute and the only way to reasonably access that compute (computing power) is through big tech,” said Joanne Hannaford, head of technology strategy at the investment bank of Deutsche Bank. audience at the Money20/20 conference earlier this week.
AI was at the top of the agenda at the Amsterdam conference.
The CEO of French AI startup Mistral AI, considered France's answer to OpenAI, told attendees there were “synergies” between its genAI products and its financial services.
“We see a lot of opportunity in creating analytics and monitoring information… which is something bankers really like to do,” Arthur Mensch said.
ING is testing an AI chatbot currently used for 2.5% of inbound customer service chats. When asked how long it would be before the chatbot could handle half or more of customer service conversations, Yilmaz said within a year.
In its first statement on AI, the European Union's securities watchdog said last week that banks and investment firms cannot shirk their responsibilities on the AI board. administration and have a legal obligation to protect their customers when using AI. He warns that the technology is likely to have a significant impact on the protection of retail investors.
Enthusiasm around the use of artificial intelligence (AI) in financial services – already widely used to detect fraud and money laundering – has become a household name since the launch of OpenAI's viral ChatGPT chatbot in late 2022 as banks explore ways to deploy generative AI.
But at a gathering of fintech executives in Amsterdam this week, some expressed concern that the amount of computing power needed to develop AI capabilities would force banks to rely even more on a small number of technology providers.
ING chief analytics officer Bahadir Yilmaz, in charge of the Dutch bank's AI work, told Reuters he plans to rely on Great technology companies “increasingly forward”, for infrastructure and machinery.
“You will always need it because sometimes the power of the machines needed for these technologies is enormous. It is also not really feasible for a bank to develop this technology,” he said.
Banks' dependence on a small number of technology companies is “one of the biggest risks”, said ING's Yilmaz, saying European banks in particular needed to make sure they could move through from one technology provider to another and avoid what he calls “vendor lock-in.” .
Britain last year proposed rules to regulate the heavy dependence of financial companies on the outside world. technology companies such as Microsoft, Google, IBM and Amazon. Regulators fear that problems at a single cloud computing company could potentially lead to an outage of services at many financial institutions.
“AI requires enormous amounts of compute and the only way to reasonably access that compute (computing power) is through big tech,” said Joanne Hannaford, head of technology strategy at the investment bank of Deutsche Bank. audience at the Money20/20 conference earlier this week.
AI was at the top of the agenda at the Amsterdam conference.
The CEO of French AI startup Mistral AI, considered France's answer to OpenAI, told attendees there were “synergies” between its genAI products and its financial services.
“We see a lot of opportunity in creating analytics and monitoring information… which is something bankers really like to do,” Arthur Mensch said.
ING is testing an AI chatbot currently used for 2.5% of inbound customer service chats. When asked how long it would be before the chatbot could handle half or more of customer service conversations, Yilmaz said within a year.
In its first statement on AI, the European Union's securities watchdog said last week that banks and investment firms cannot shirk their responsibilities on the AI board. administration and have a legal obligation to protect their customers when using AI. He warns that the technology is likely to have a significant impact on the protection of retail investors.
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